Is Purple Innovation, Inc. overvalued or undervalued?

As of 10 May 2022, the valuation grade for Purple Innovation, Inc. moved from expensive to risky. The company is currently considered overvalued based on its financial metrics. Notable ratios include a Price to Book Value of 62.50, an EV to EBIT of -3.33, and an EV to EBITDA of -13.60, indicating significant financial distress and inefficiency.
In comparison to peers, La-Z-Boy, Inc. and Ethan Allen Interiors, Inc. are classified as very attractive, with P/E ratios of 12.21 and 22.70, respectively, highlighting the stark contrast in valuation. Additionally, Purple Innovation's return metrics show a troubling trend, with a one-year stock return of -12.39% compared to a 10.26% return for the S&P 500, further reinforcing the notion that the company is overvalued in its current state.